KANACHUR SEASONING INDUSTRIES vs. THE DEPUTY COMMISSIONER OF INCOME TAX- CENTRAL CIRCLE

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WP/8779/2026HC KarnatakaKAHC01019303202628 July 2026Author: B M SHYAM PRASAD4 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court allowed the petitioner to withdraw the writ petition. The court noted that the petitioner had filed an appeal with the Income Tax Appellate Tribunal (ITAT) and requested condonation of delay. The High Court, however, held that the question of delay in filing the appeal must be considered by the ITAT itself. Therefore, the writ petition was disposed of with the observation that the ITAT would address the delay. No specific findings were made on the merits of the assessment, demand, or penalty notices. The operative direction was to dispose of the writ petition, leaving the substantive issues and the delay in filing the appeal to be decided by the ITAT.

What were the facts?

The petitioner, Kanachur Seasoning Industries, represented by its partner Ullal Kojabba Monu, filed a writ petition before the High Court of Karnataka. The petition challenged several orders and notices issued by the Deputy Commissioner of Income Tax, Central Circle - 1, Mangaluru. These included a show cause notice dated 29.12.2021 under Section 153C read with Section 153A of the Income Tax Act, 1961, for Assessment Year (AY) 2020-21. It also challenged the final assessment order dated 22.12.2025 under Section 153C r.w.s 144C(13), a demand notice dated 22.12.2025 under Section 156, a penalty notice dated 22.12.2025 under Section 274 r.w.s 271AA(1), and another penalty notice dated 22.12.2025 under Section 274 r.w.s 270A, all for AY 2020-21. The petitioner sought to quash these notices and orders, and restrain coercive recovery steps.

What were the issues?

The High Court was not called upon to decide any substantive issues of law or fact. The petitioner's counsel filed a memo seeking permission to withdraw the writ petition. The reason provided was that the petitioner had preferred an appeal before the Income Tax Appellate Tribunal (ITAT) under Section 253 of the Income Tax Act, 1961. The petitioner also requested that any delay in filing the appeal before the ITAT be condoned. The respondent, the Deputy Commissioner of Income Tax, did not present any arguments as the matter was disposed of on the petitioner's request for withdrawal.

Which sections of the Income-tax Act were involved?

Section 153C,Section 153A,Section 144C(13),Section 156,Section 274,Section 271AA(1),Section 270A,Section 253

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF JULY, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 8779 OF 2026 (T-IT) BETWEEN:

KANACHUR SEASONING INDUSTRIES D. NO. 2-72/1, N.H. 17, KALLAPU, P.O. PERMANNUR, MANGALURU - 575 017

REPRESENTED BY ITS PARTNER ULLAL KOJABBA MONU AGED ABOUT 71 YEARS, R/A KANACHUR VILLA, UNIVERSITY ROAD, DERALAKATTE, MANGALORE, KARNATAKA - 575 018 …PETITIONER (BY SRI. PRASANNA B.M. ADVOCATE FOR; SRI. BALRAM R RAO.,ADVOCATE)

AND:

THE DEPUTY COMMISSIONER OF INCOME TAX- CENTRAL CIRCLE CIRCLE -1, ALBURUERQUE HOUSE, OPPOSITE FORUM MALL, PANDESHWARA, MANGALURU, KARNATAKA - 575001. …RESPONDENT (BY SRI. DILIP M.,ADVOCATE)

Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA

THIS WP IS FILED UNDER ARTICLES 226 & 227 THE CONSTITUTION INDIA PRAYING TO DIRECTION UNDER ARTICLE

THE CONSTITUTION OF INDIA QUASHING THE SHOW CAUSE NOTICE DATED 29.12.2021 UNDER SECTION 153C READ WITH SECTION 153A OF THE INCOME TAX ACT, 1961, FOR THE ASSESSMENT YEAR 2020-21 IN DIN. ITBA/AST/S/153C/2021-22/1038226736(1) ENCLOSED AS ANNEXURE-A TO THIS PETITION. B) QUASHING THE FINAL ASSESSMENT ORDER DATED 22.12.2025 PASSED UNDER SECTION 153C R.W.S 144C(13) OF THE ACT FOR A.Y. 2020-21 IN DIN.ITBA/AST/S/153C/2025- 26/1083957810(1) ENCLOSED AS ANNEXURE-L TO THIS PETITION. C) QUASH THE DEMAND NOTICE DT. 22/12/2025 ISSUED UNDER SECTION 156 OF THE ACT FOR A.Y. 2020-21 IN DIN.ITBA/AST/S/156/2025- 26/1083957823(1) ENCLOSED AS ANNEXURE M TO THIS PETITION WHICH IS ARISING OUT OF THE IMPUGNED ASSESSMENT AND INVALID JURISDICTION. D) QUASHING THE PENALTY NOTICE DATED 22.12.2025 PASSED UNDER SECTION 274 R.W.S 271AA(1) OF THE ACT FOR A.Y.2020-21 IN DIN AND ORDER NO. ITBA / PNL/M/271AA(1)/2025-26/1084085376(1) ENCLOSED AS ANNEXURE N TO THIS PETITION. E) QUASHING THE PENALTY NOTICE DATED 22.12.2025 PASSED UNDER SECTION 274 R.W.S 270A OF THE ACT FOR A.Y.2020-21 IN DIN AND ORDER NO. ITBA/PNL/S/270A/2025-26/1083957922(1) ENCLOSED

AS ANNEXURE P TO THIS PETITION. F) DIRECTION RESTRAINING THE RESPONDENTS, THEIR OFFICERS, SERVANTS AND AGENTS FROM TAKING ANY COERCIVE STEPS FOR RECOVERY PURSUANT TO THE IMPUGNED ASSESSMENT AND DEMAND, PENDING DISPOSAL OF THE PRESENT WRIT PETITION.

THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD

ORAL ORDER

The learned counsel for the petitioner files a Memo, which reads as under: " The Advocate for the Petitioner submits that he may be permitted to withdraw the aforesaid Writ Petition, as the Petitioner has preferred an appeal under section 253 of the Act. It is humbly requested that, a delay in filing of an appeal before the ITAT may please be condoned. "

In continuation, the learned counsel submits that the petitioner has filed an appeal with the Income Tax Appellate Tribunal (ITAT) and that this Court may

condone the delay. However, this Court is of the considered view that the question of delay must also be considered by the ITAT. As such, the petition stands disposed of.

Sd/- (B M SHYAM PRASAD) JUDGE

NV List No.: 1 Sl No.: 0

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